North Carolina Down Payment Support Systems

Payments Gateway - These programs would be the Mortgage Credit Certificate as well as the deposit Assistance Program.

If you meet the requirements for one of the programs and also you buy a house between December 1, 2009 and January 1, 2009, you can ALSO qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? A first-time Home Buyer is someone who hasn't owned a house in the past three years. This is precisely the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with moderate and low incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step further. An MCC “reduces your tax liability depending on a portion of the mortgage interest that you pay.

In case you qualify for the MCC, you are able to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes. You can save up to $2,000 on your taxes.

You'll be able to unite this with the $8,000 tax credit if you do qualify for 2009. This would reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the purchase price of the house as well as your income you're buying. Household income is defined as the “gross income of the mortgagor and every other person anticipated to reside in the residence who is 18 years of age or older.”

The income and house price limitations Durham and Chatham Counties are listed below.

MCC Income Limits 1 Individual $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing House $210,000

Who Qualifies for Down Payment Help?

Home buyers that want help with their down payment and closing prices may be able to get down payment assistance - or, quite simply, interest-free, deferred second mortgages up to $8,000. The buyer only needs to pay and the load would pay around .

This plan has more rigorous income limitations than the MCC plan outlined above. Like the MCC program, it might be used in combination with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nonetheless, can't be employed along with the MCC. That is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Persons $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New House $210,000 Existing Residence $210,000